Cost Of Living in Tehran 2024
Average monthly spending for singles, couples, students, and families in Tehran
Whether you're living in Tehran or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.
Average Monthly Expenditure27M IRR
per month$6502.1M IRR $50
$6,500 270M IRR
Single19M IRR
per month$4506.3M IRR $150
$3,000 130M IRR
Couple32M IRR
per month$75011M IRR $250
$4,000 170M IRR
Family42M IRR
per month$1,00015M IRR $350
$5,500 230M IRR
Student12M IRR
per month$2905M IRR $120
$530 22M IRR
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.
Singles
The average monthly expense for a single person living in Tehran is 19M IRR. Expenses can range from 6.3M IRR at the minimum level to 130M IRR at the highest end.
Couples
The average monthly spending of couples in Tehran is 32M IRR. Expenditure can range from 11M IRR to 170M IRR per month.
Families
The average cost of living for families in Tehran is 42M IRR per month. Families spend anywhere from 15M IRR to 230M IRR.
Students
The average monthly expenditure for students in Tehran is 12M IRR. Students spend from 5M IRR to 22M IRR per month.
Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.
Prices and cost of goods and services in Tehran
Dining, food, and beverages costs
Large bottle of water | 2,900 IRR | 3,300 IRR | 3,900 IRR |
Fast food combo meal | 25,000 IRR | 50,000 IRR | 84,000 IRR |
Restaurant meal for one | 88,000 IRR | 130,000 IRR | 260,000 IRR |
Fine dining meal for one | 180,000 IRR | 260,000 IRR | 1.1M IRR |
Soda or Soft Drink | 3,600 IRR | 4,200 IRR | 5,000 IRR |
Cappuccino or latte | 21,000 IRR | 33,000 IRR | 50,000 IRR |
Grocery and market costs
Milk large bottle | 17,000 IRR | 20,000 IRR | 25,000 IRR |
Loaf of bread | 3,000 IRR | 3,400 IRR | 4,000 IRR |
12 eggs | 13,000 IRR | 17,000 IRR | 25,000 IRR |
Fresh whole chicken | 28,000 IRR | 37,000 IRR | 52,000 IRR |
Beef 1 kg or 1 lb | 33,000 IRR | 50,000 IRR | 100,000 IRR |
Rice 1 kg or 1 lb | 13,000 IRR | 18,000 IRR | 26,000 IRR |
Tomato 1 kg or 1 lb | 5,000 IRR | 6,700 IRR | 13,000 IRR |
Apples 1 kg or 1 lb | 9,000 IRR | 12,000 IRR | 19,000 IRR |
Commute, travel, and transportation costs
20 minutes taxi ride | 22,000 IRR | 26,000 IRR | 53,000 IRR |
Average car full tank | 130,000 IRR | 170,000 IRR | 330,000 IRR |
Average car 1-day rental | 140,000 IRR | 180,000 IRR | 280,000 IRR |
Average car price | 63M IRR | 130M IRR | 170M IRR |
Bus ticket one way | 4,600 IRR | 6,900 IRR | 14,000 IRR |
Car Service | 180,000 IRR | 280,000 IRR | 550,000 IRR |
Utility cost (monthly)
Utility Bill - Individual | 380,000 IRR | 1.1M IRR | 7.6M IRR |
Utility Bill - Couple | 530,000 IRR | 1.6M IRR | 8.4M IRR |
Utility Bill - Family | 440,000 IRR | 1.3M IRR | 7M IRR |
Internet and cable | 130,000 IRR | 250,000 IRR | 330,000 IRR |
Mobile phone charges | 100,000 IRR | 170,000 IRR | 500,000 IRR |
Leisure and activities costs
Movie ticket | 63,000 IRR | 84,000 IRR | 130,000 IRR |
One month gym membership | 220,000 IRR | 280,000 IRR | 550,000 IRR |
Cloths and accessories costs
Pair of jeans or pants | 160,000 IRR | 230,000 IRR | 340,000 IRR |
Woman dress | 150,000 IRR | 210,000 IRR | 690,000 IRR |
Woman shoes | 150,000 IRR | 200,000 IRR | 460,000 IRR |
Men's shoes | 130,000 IRR | 150,000 IRR | 310,000 IRR |
Men suit | 140,000 IRR | 170,000 IRR | 920,000 IRR |
Regular t-shirt | 69,000 IRR | 92,000 IRR | 280,000 IRR |
Housing costs / monthly rent
Studio apartment | 2.3M IRR | 3.4M IRR | 9.2M IRR |
1-bedroom apartment | 3.4M IRR | 5.5M IRR | 14M IRR |
2-bedroom apartment | 4.6M IRR | 6.9M IRR | 18M IRR |
Housing costs / Buying
Studio apartment | 460M IRR | 690M IRR | 1,400M IRR |
1-bedroom apartment | 550M IRR | 920M IRR | 3,400M IRR |
2-bedroom apartment | 920M IRR | 2,800M IRR | 5,500M IRR |
Furniture Costs
King Size Bed | 2.5M IRR | 3.1M IRR | 4.2M IRR |
Double Bed | 1.7M IRR | 2.5M IRR | 3.1M IRR |
Single Bed | 1.5M IRR | 1.9M IRR | 2.5M IRR |
Living Room | 2.8M IRR | 3.6M IRR | 13M IRR |
Dining Table | 1.3M IRR | 1.7M IRR | 3.1M IRR |
Sofa or Couch Electronics and House Appliance Costs
TV Set
Fridge or Freezer | 1.5M IRR | 2.3M IRR | 3.1M IRR |
Washing Machine
Stove or Cooker | 1.8M IRR | 2.3M IRR | 3.1M IRR |
Mobile Phone | 2.1M IRR | 2.5M IRR | 3.6M IRR |
Laptop or Computer Expenditure to Income Ratio in Tehran
One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.
Spending to Income Ratio
95%
88% to 110%
( expenditure / income ) x 100
Expense to income distribution levels
| Spending To Income Ratio | % People |
|---|
| < 50% | 4% |
| 50% - 60% | 9% |
| 60% - 70% | 15% |
| 70% - 80% | 25% |
| 80% - 90% | 20% |
| 90% - 100% | 11% |
| 100% - 110% | 6% |
| 110% - 120% | 4% |
| 120% - 130% | 3% |
| 130% - 140% | 2% |
| > 140% | 2% |
Interpretation and Analysis
The average spending-to-salary ratio in Tehran is 95%
This means that on average, people spend around 95% of their income for living.
According to the distribution table, 15% of the population spend approximately 60% to 70% of their income every month.
How can spending be more than income?
A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.
Individual
86%
Spending-Income-Ratio
80%
95%
Couple
90%
Spending-Income-Ratio
84%
100%
Family
100%
Spending-Income-Ratio
93%
110%
How do people spend their money in Tehran?
We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.
The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.
Housing Expenditure23%
23% of total expenses on average (12% to 31%)
| LOW | $15 630,000 IRR |
| AVERAGE | $200 8.2M IRR |
| HIGH | $2,000 82M IRR |
| Per Month |
People living in Tehran typically spend from 12% to 31% of their total monthly expenditure on housing with 23% being the average. The average spend on housing is 8.2M IRR with expenditure ranging from 630,000 IRR to 82M IRR. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.
Utilities, Electricity, Water8%
8% of total expenses on average (5% to 12%)
| LOW | $2.5 110,000 IRR |
| AVERAGE | $33 1.4M IRR |
| HIGH | $330 14M IRR |
| Per Month |
Utility expenditure like electricity, water, and gas in Tehran ranges from 5% to 12% of total expenses with 8% being the average. The average monthly cost of utilities is 1.4M IRR with 110,000 IRR and 14M IRR being the upper and lower limits.
Transport, Fuel, Commute7%
7% of total expenses on average (3% to 11%)
| LOW | $5 210,000 IRR |
| AVERAGE | $65 2.7M IRR |
| HIGH | $650 27M IRR |
| Per Month |
Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 210,000 IRR to 27M IRR on commuting with 2.7M IRR being the norm for most people in one month. This means that money spent on transport constitutes about 7% of total spending on average but can go as low as 3% or as high as 11%.
Food and Groceries Cost28%
28% of total expenses on average (20% to 34%)
| LOW | $13 530,000 IRR |
| AVERAGE | $160 6.9M IRR |
| HIGH | $1,600 69M IRR |
| Per Month |
The average outlay on groceries in a month in Tehran is 6.9M IRR. The cost of groceries can range between 530,000 IRR to 69M IRR. People spend on average about 28% on food and groceries with upper and lower bounds of 20% and 34% respectively.
Healthcare and Medical Services10%
10% of total expenses on average (5% to 13%)
| LOW | $3.5 150,000 IRR |
| AVERAGE | $46 1.9M IRR |
| HIGH | $460 19M IRR |
| Per Month |
People in Tehran allocate 5% to 13% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 10%. The range of medical expenses range from 150,000 IRR to 19M IRR with 1.9M IRR being the norm.
Leisure and Shopping4%
4% of total expenses on average (2% to 8%)
| LOW | $2 84,000 IRR |
| AVERAGE | $26 1.1M IRR |
| HIGH | $260 11M IRR |
| Per Month |
This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 84,000 IRR to 11M IRR with 1.1M IRR being the average. Speaking of percentages, that equates to 2% to 8% of total expenses with an average of 4% for most residents.
Education and Schooling5%
5% of total expenses on average (3% to 11%)
| LOW | $3 130,000 IRR |
| AVERAGE | $39 1.6M IRR |
| HIGH | $390 16M IRR |
| Per Month |
Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 5% of the monthly expenditure with 3% and 11% being the lower and upper bounds respectively. The average reported education cost is 1.6M IRR per month with 130,000 IRR being the minimum spent amount and 16M IRR being the maximum.
Other Expenses14%
14% of total expenses on average (9% to 21%)
| LOW | $6.5 270,000 IRR |
| AVERAGE | $85 3.6M IRR |
| HIGH | $850 36M IRR |
| Per Month |
How much money can you save in Tehran every month?
We asked thousands of people what percentage of their income can they save in a month. Below are the answers.
What percentage of people in Tehran manage to save money from their income every month?
Almost 64% of the surveyed people in Tehran said that they can save some money at the end of each month while 36% said that aren't saving anything.
Percentage of people saving money by population group in Tehran
| Group | Savers | Non Savers |
|---|
| Singles | 65% | 36% |
| Couples | 59% | 41% |
| Families | 54% | 47% |
Savings-to-Income Ratio
The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.
Saving to Income Ratio
Average Monthly Saved Amount
650,000 IRR
$15 | 8.4M IRR
$200 | 84M IRR
$2,000 |
For most people, 9.9% to 32% of their monthly income is what they can allocate to their savings, with 18% being the average. The amount of money that people can save is approximately 8.4M IRR on average with savings ranging from 650,000 IRR to 84M IRR.
65% of surveyed singles reported some of their income going to savings while 59% of couples said the same. 54% of families confirmed their ability to save money.
How much money do people actually save in Tehran?
The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.
Singles
Saving to Income Ratio
Average Monthly Saved Amount
1.9M IRR
$46 | 5.8M IRR
$140 | 39M IRR
$920 |
Savings to income distribution levels for singles
| Saving To Income Ratio | % Singles |
|---|
| 0% - 10% | 32% |
| 10% - 20% | 25% |
| 20% - 30% | 16% |
| 30% - 40% | 13% |
| 40% - 50% | 10% |
| > 50% | 4% |
Interpretation and Analysis
Singles who can afford to save reported that they allocate from 13% to 34% of their monthly income to savings, with 22% being the average for most singles. The average amount of money that singles are able to save is 5.8M IRR with 1.9M IRR and 39M IRR being the minimum and maximum respectively.
Couples
Saving to Income Ratio
Average Monthly Saved Amount
3.2M IRR
$77 | 9.7M IRR
$230 | 52M IRR
$1,200 |
Savings to income distribution levels for couples
| Saving To Income Ratio | % Couples |
|---|
| 0% - 10% | 36% |
| 10% - 20% | 27% |
| 20% - 30% | 19% |
| 30% - 40% | 8% |
| 40% - 50% | 7% |
| > 50% | 3% |
Interpretation and Analysis
Couples who confirmed their ability to save reported saving equivalent to 11% to 33% of their monthly income, with 20% being the average for most couples. The average amount of money that couples can save is 9.7M IRR with 3.2M IRR and 52M IRR being the minimum and maximum respectively.
Families
Saving to Income Ratio
Average Monthly Saved Amount
4.5M IRR
$110 | 13M IRR
$310 | 71M IRR
$1,700 |
Savings to income distribution levels for families
| Saving To Income Ratio | % Families |
|---|
| 0% - 10% | 39% |
| 10% - 20% | 30% |
| 20% - 30% | 20% |
| 30% - 40% | 5% |
| 40% - 50% | 4% |
| > 50% | 2% |
Interpretation and Analysis
Families in Tehran can save anywhere between 9.9% to 30% of their monthly income, with 17% being the average for most families. The average amount of money that families can put aside is 13M IRR with 4.5M IRR and 71M IRR being the minimum and maximum respectively.
A typical and healthy budgeting structure
The 50/30/20 rule
Spending among different people can vary significantly based on factors such as their income, lifestyle,
location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule,
which suggests allocating your income into three main categories in the following percentages.
50% for needs and financial obligations
This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.
30% for wants and discretionary spending
This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.
20% for savings and emergency fund
This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.
About financial planning, money management, and household budgeting
The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.
Affordable living in Tehran
Income and cost of living compatibility
We asked residents one simple question and recorded their answers.
Is it affordable or economical to live in Tehran?
Around 58% of surveyed residents think that living in Tehran is affordable with proper budgeting while 43% reported that it is just too expensive and not affordable even with frugality and thriftness.
Low-cost alternatives in Tehran
People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:
Plenty of low-cost options63%
Few low-cost options37%
Based on the survey, 63% of the people living in Tehran have no problem finding low-cost alternatives to support a frugal lifestyle while 37% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.
Emergency Funds
An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of Tehran whether they have an emergency fund and the answers were as follows.
Yes58%
No43%
Based on the survey, 43% of the people living in Tehran said that they don't have an emergency fund while 58% said that they do.
Financial Literacy in Iran
Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.
Financial Leteracy47%
We asked residents of Iran whether they acquired any adequate personal financial training in their lives. Approximately 53% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 47% said that they know about the general principles of personal finance from sources other than their own experience.
Difficulty in Budgeting and Financial Planning
We wanted to understand whether residents of Iran have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 43% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 57% said that they have everything under control.
Struggles with finance43%
Easily manages finances57%
Financial goals of people in Tehran
In an attempt to understand the economic situation in Tehran, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.
| Financial Goal | % People |
|---|
| Emergency Fund | 8% |
| Debt Reduction | 43% |
| Retirement Savings | 10% |
| Education Funding | 7% |
| Homeownership | 18% |
| Investing | 6% |
| Travel or Lifestyle | 6% |
| Healthcare Expenses | 14% |
| Financial Independence | 5% |
Around 8% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 43% said their number one priority is to pay off high-interest debt or loans and improve credit. 10% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 6% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 14% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.
Saving Challenges in Tehran
Reasons that make it difficult for people to save money
We wanted to understand what is stopping people from maximizing their savings in Tehran. Listed below are the answers given by the survey participants.
| Reason | % People |
|---|
| Low Income | 5% |
| High Expenses | 8% |
| Debt and Loans | 13% |
| Lack of Budgeting Skills | 12% |
| Impulsive Spending | 12% |
| Financial Emergencies | 7% |
| Living the moment | 5% |
| Will do it later | 21% |
| Inflation | 13% |
| Social Pressure | 3% |
| Market Instability | 2% |
Around 5% of the people said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 13% of the residents said that they are burdened with debt and find it challenging to save money. 12% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 12% blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 21% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 13% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or societal expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.
Typical saving choices for people in Tehran
Where do people choose to put their savings?
| Saving Type | % People |
|---|
| Emergency Funds | 12% |
| Gold | 13% |
| Savings Accounts | 17% |
| Retirement Accounts | 10% |
| Cash Savings | 21% |
| Real Estate | 9% |
| Investment | 5% |
| Stocks | 4% |
| Bonds | 5% |
| Mutual Funds | 2% |
| Certificates of Deposit | 3% |
Retirement, pension plans, and life after work in Tehran
What does the retirement lifestyle look like in Tehran and how much retirement savings are required?
Retirement age
The retirement age for most employees in Iran is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.
Retirement planning and savings
There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.
The typical saved amount of money you should have at every age as multiples of monthly salary:| Age | Amount |
|---|
| 25 | 5x monthly salary at age 25 |
| 30 | 10x monthly salary at age 30 |
| 35 | 15x monthly salary at age 35 |
| 40 | 25x monthly salary at age 40 |
| 45 | 32x monthly salary at age 45 |
| 50 | 48x monthly salary at age 50 |
| 55 | 56x monthly salary at age 55 |
| 60 | 64x monthly salary at age 60 |
| 65 | 78x monthly salary at age 65 |
The typical average saved amount of money you should have at every age in Tehran:| Age | Amount |
|---|
| 25 | 72M IRR |
| 30 | 140M IRR |
| 35 | 250M IRR |
| 40 | 360M IRR |
| 45 | 540M IRR |
| 50 | 750M IRR |
| 55 | 900M IRR |
| 60 | 1,100M IRR |
| 65 | 1,300M IRR |
Retirement Income Distribution
We asked residents of Tehran about their retirement income sources and below are the results.
| Source | % People |
|---|
| Pensions | 12% |
| Savings | 23% |
| Investments | 12% |
| Social Security | 7% |
| Annuities | 7% |
| Part-time Job | 15% |
| Real Estate | 18% |
| Dividends and Interest | 7% |
Retirement Monthly Expenses in Tehran 4.7M IRR
$110 | 14M IRR
$330 | 93M IRR
$2,200 |
Debt, loans, and mortgages in Tehran
Percentage of people who are in debt
According to the survey, 30% of the people in Tehran have some kind of debt, loan, mortgage, or credit card payments while 70% reported that they don't have financial obligations to banks.
Debt-to-income ratio in Tehran
Debt to income ratio
34%
25% to 44%
( monthly debt payment / monthly income ) x 100
Interpretation
The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 34% of the people's monthly income in Tehran goes to debt settlement.
Debt levelsMonthly debt settlement payment as percentage of monthly income
| Debt-to-income ratio | % People |
|---|
| > 60% | 3% |
| 50% - 60% | 18% |
| 40% - 50% | 15% |
| 30% - 40% | 17% |
| 20% - 30% | 10% |
| 10% - 20% | 12% |
| 0% - 10% | 25% |
According to our data, 3% of the debtors in Tehran pay 60%+ of their income as debt settlement while 18% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 15% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 17% dedicated 30% to 40% of income for same. Things are looking brighter for 10% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.
Distribution by type of debt in Tehran
| Debt | % People |
|---|
| Real Estate Mortgage | 8% |
| Auto Loan | 15% |
| Student Loan | 4% |
| Credit Card | 30% |
| Personal Loan | 43% |
8% of debtors in Tehran confirm that real estate mortgages constitutes the main part of their outstanding debt while 30% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 15% of people and personal loans rose at 43%. Lastly, student loans are the main source of debt for 4% of debtors in Tehran.
About credit score and debt managementManaging debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.
Good debt vs. Bad debt
Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.
Loan Affordability Index in Tehran
Besides measuring the loan-to-income ratio, we asked residents of Tehran how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.
Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.
| Frequency | % People |
|---|
| Never | 50% |
| Once a year | 24% |
| Twice a year | 13% |
| Three times a year | 9% |
| Four times a year | 4% |
Housing costs, accommodation, and housing affordability in Tehran
Rental costs and house/apartment prices can vary drastically between different areas and locations.
Rent Cost in Tehran
Monthly Rent Prices
Studio apartment | 2.3M IRR | 3.4M IRR | 9.2M IRR |
1-bedroom apartment | 3.4M IRR | 5.5M IRR | 14M IRR |
2-bedroom apartment | 4.6M IRR | 6.9M IRR | 18M IRR |
3-bedroom apartment | 5.5M IRR | 9.2M IRR | 25M IRR |
Furnished apartment
Townhouse
House
Villa The monthly rental cost of a studio apartment in Tehran ranges between 2.3M IRR and 9.2M IRR, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 3.4M IRR to 14M IRR. Two-bedroom rentals rate ranges between 4.6M IRR and 18M IRR per month. The monthly rental for a three-bedroom apartment ranges from 5.5M IRR to 25M IRR. The average rent of a townhouse in Tehran is around 14M IRR while house rental costs can be as high as 28M IRR per month. Finally, if you want to rent a villa, expect to pay anywhere from 14M IRR to 55M IRR per month.
Apartment and house prices in Tehran
Cost of buying a property
Studio apartment | 460M IRR | 690M IRR | 1,400M IRR |
1-bedroom apartment | 550M IRR | 920M IRR | 3,400M IRR |
2-bedroom apartment | 920M IRR | 2,800M IRR | 5,500M IRR |
3-bedroom apartment | 3,100M IRR | 4,600M IRR | 14,000M IRR |
| $73,000 | $110,000 | $330,000 |
Townhouse | 3,900M IRR | 9,200M IRR | 34,000M IRR |
| $94,000 | $220,000 | $820,000 |
House | 4,600M IRR | 28,000M IRR | 39,000M IRR |
| $110,000 | $660,000 | $940,000 |
Villa | 5,500M IRR | 31,000M IRR | 46,000M IRR |
The average price of a studio apartment in Tehran can range from 460M IRR to 1,400M IRR depending on location. One bedroom cost can be anywhere from 550M IRR to 3,400M IRR. A villa can cost you 31,000M IRR on average with prices ranging from 5,500M IRR to 46,000M IRR.
If you're leasing or purchasing, housing costs in Tehran will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.
House / apartment prices to income ratio
Property price to income ratio( average property price / average monthly income ) x 100
| 35 | x99 monthly income | 214 |
Property prices in Tehran can be x99 to x214 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x99 multiples of the average monthly salary in Tehran.
Rent to income ratio
Rent to income ratio( monthly rental / monthly income ) x 100
The average rent-to-income ratio in Tehran is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 21% to 43% depending on the salary, location, and type of property.
The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.
Housing affordability index
The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.
Housing Affordability Index
29% Property Taxes
Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.
Home Maintenance Costs
Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.
| 42,000 IRR | 550,000 IRR | 5.5M IRR |
Urban vs. rural living costs
Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.
SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Tehran
Housing29%
29% of total expenses on average (17% to 41%)
| LOW | $54 2.3M IRR |
| AVERAGE | $160 6.8M IRR |
| HIGH | $1,100 46M IRR |
| Per Month |
Utilities, Electricity, Water9%
9% of total expenses on average (5% to 14%)
| LOW | $9 380,000 IRR |
| AVERAGE | $27 1.1M IRR |
| HIGH | $180 7.6M IRR |
| Per Month |
Transport, Fuel5%
5% of total expenses on average (3% to 11%)
| LOW | $12 510,000 IRR |
| AVERAGE | $36 1.5M IRR |
| HIGH | $240 10M IRR |
| Per Month |
Food and Groceries19%
19% of total expenses on average (13% to 24%)
| LOW | $24 1M IRR |
| AVERAGE | $72 3M IRR |
| HIGH | $480 20M IRR |
| Per Month |
Healthcare12%
12% of total expenses on average (6% to 16%)
| LOW | $14 570,000 IRR |
| AVERAGE | $41 1.7M IRR |
| HIGH | $270 11M IRR |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (2% to 5%)
| LOW | $7.5 320,000 IRR |
| AVERAGE | $23 950,000 IRR |
| HIGH | $150 6.3M IRR |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $3 130,000 IRR |
| AVERAGE | $9 380,000 IRR |
| HIGH | $60 2.5M IRR |
| Per Month |
Other Expenses22%
22% of total expenses on average (14% to 26%)
| LOW | $27 1.1M IRR |
| AVERAGE | $81 3.4M IRR |
| HIGH | $540 23M IRR |
| Per Month |
CoupleAverage monthly living expenditure breaks and spending patterns for couples in Tehran
Housing26%
26% of total expenses on average (19% to 36%)
| LOW | $83 3.5M IRR |
| AVERAGE | $250 10M IRR |
| HIGH | $1,300 56M IRR |
| Per Month |
Utilities, Electricity, Water8%
8% of total expenses on average (6% to 12%)
| LOW | $13 530,000 IRR |
| AVERAGE | $38 1.6M IRR |
| HIGH | $200 8.4M IRR |
| Per Month |
Transport, Fuel9%
9% of total expenses on average (3% to 14%)
| LOW | $30 1.3M IRR |
| AVERAGE | $90 3.8M IRR |
| HIGH | $480 20M IRR |
| Per Month |
Food and Groceries17%
17% of total expenses on average (12% to 22%)
| LOW | $35 1.5M IRR |
| AVERAGE | $110 4.4M IRR |
| HIGH | $560 24M IRR |
| Per Month |
Healthcare14%
14% of total expenses on average (8% to 18%)
| LOW | $28 1.2M IRR |
| AVERAGE | $83 3.5M IRR |
| HIGH | $440 19M IRR |
| Per Month |
Leisure, Shopping3%
3% of total expenses on average (1% to 6%)
| LOW | $15 630,000 IRR |
| AVERAGE | $45 1.9M IRR |
| HIGH | $240 10M IRR |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $5 210,000 IRR |
| AVERAGE | $15 630,000 IRR |
| HIGH | $80 3.4M IRR |
| Per Month |
Other Expenses21%
21% of total expenses on average (15% to 27%)
| LOW | $43 1.8M IRR |
| AVERAGE | $130 5.4M IRR |
| HIGH | $680 29M IRR |
| Per Month |
FamilyAverage monthly expenses and break out of spending for families living in Tehran
Housing25%
25% of total expenses on average (20% to 35%)
| LOW | $110 4.7M IRR |
| AVERAGE | $320 13M IRR |
| HIGH | $1,800 74M IRR |
| Per Month |
Transport, Fuel5%
5% of total expenses on average (3% to 7%)
| LOW | $28 1.2M IRR |
| AVERAGE | $80 3.4M IRR |
| HIGH | $440 19M IRR |
| Per Month |
Food and Groceries21%
21% of total expenses on average (14% to 27%)
| LOW | $63 2.7M IRR |
| AVERAGE | $180 7.6M IRR |
| HIGH | $990 42M IRR |
| Per Month |
Healthcare11%
11% of total expenses on average (7% to 16%)
| LOW | $28 1.2M IRR |
| AVERAGE | $80 3.4M IRR |
| HIGH | $440 19M IRR |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (1% to 6%)
| LOW | $18 740,000 IRR |
| AVERAGE | $50 2.1M IRR |
| HIGH | $280 12M IRR |
| Per Month |
Education13%
13% of total expenses on average (6% to 21%)
| LOW | $49 2.1M IRR |
| AVERAGE | $140 5.9M IRR |
| HIGH | $770 32M IRR |
| Per Month |
Other Expenses16%
16% of total expenses on average (9% to 21%)
| LOW | $42 1.8M IRR |
| AVERAGE | $120 5.1M IRR |
| HIGH | $660 28M IRR |
| Per Month |
StudentCost of living and expenses break down for students living in Tehran
Housing17%
17% of total expenses on average (12% to 23%)
| LOW | $28 1.2M IRR |
| AVERAGE | $71 3M IRR |
| HIGH | $130 5.4M IRR |
| Per Month |
Utilities, Electricity, Water7%
7% of total expenses on average (5% to 11%)
| LOW | $4.7 200,000 IRR |
| AVERAGE | $12 500,000 IRR |
| HIGH | $21 890,000 IRR |
| Per Month |
Transport, Fuel4%
4% of total expenses on average (4% to 10%)
| LOW | $8.3 350,000 IRR |
| AVERAGE | $21 870,000 IRR |
| HIGH | $37 1.6M IRR |
| Per Month |
Food and Groceries23%
23% of total expenses on average (17% to 27%)
| LOW | $24 990,000 IRR |
| AVERAGE | $59 2.5M IRR |
| HIGH | $110 4.5M IRR |
| Per Month |
Healthcare9%
9% of total expenses on average (6% to 12%)
| LOW | $7.1 300,000 IRR |
| AVERAGE | $18 740,000 IRR |
| HIGH | $32 1.3M IRR |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (2% to 6%)
| LOW | $5.9 250,000 IRR |
| AVERAGE | $15 620,000 IRR |
| HIGH | $27 1.1M IRR |
| Per Month |
Education18%
18% of total expenses on average (11% to 23%)
| LOW | $22 940,000 IRR |
| AVERAGE | $56 2.4M IRR |
| HIGH | $100 4.2M IRR |
| Per Month |
Other Expenses19%
19% of total expenses on average (13% to 25%)
| LOW | $18 740,000 IRR |
| AVERAGE | $44 1.9M IRR |
| HIGH | $80 3.3M IRR |
| Per Month |
